ODOT to begin soy diesel purchase

As prices at the pump surge, the state is making the nation's largest purchase of soybean-derived fuel to run its highway department vehicles.

The state is seeking bids for a three-year contract to provide 1 million gallons of biodiesel fuel to use in Ohio Department of Transportation trucks.

"Our tentative deadline for receiving bids is Feb. 22 with the anticipated first delivery in early March," said Katherine West, spokeswoman for the Ohio Department of Administrative Services.

To help Ohio farmers combat a crippling drought, Gov. Bob Taft proposed a major purchase of biodiesel fuel. Taft proposed the idea to farmers last September while also offering $5 million in state funds to help keep farms in operation.

Biodiesel fuel is widely used in Europe and has been used by ODOT on a limited basis since 1996, said Tim Wald, equipment manager for the department's Office of Equipment Management.

Biodiesel is made from blending renewable feedstocks such as vegetable oil or animal fat with petroleum diesel. The blend most often used contains 20 percent renewable oil and 80 percent petroleum.

While biodiesel generally costs more than traditional fuel, Wald said the state paid about $1.50 per gallon for its last load. Ohio truckers are now paying $1.60 per gallon or more to make bulk purchases of traditional diesel.

Wald said pilot uses of the soybean alternative have proven not to damage truck engines and have not been negatively impacted by cold weather. Diesel users have questioned whether the alternative would begin to form a gel when temperatures dropped, making it more difficult for engines to burn.

John Lumpe, director of new use development for the Ohio Soybean Council, said the major purchase by ODOT of biodiesel will be a boost to soybean farmers in Ohio and 28 other states that grow the crop.

Lumpe said opening up a new market for soybeans could help boost prices by about 8 to 12 cents per bushel. At about $5 per bushel, the increase would not provide dramatic income growth for farmers, but would produce a meaningful gain, he said.

"This will put a little money back in the producers' pockets," he said.

About 13 companies in the United States produce or distribute biodiesel, with some using Ohio-grown soy, Lumpe said. ODOT could gets its diesel from one or several of the fuel distributors.

In the near term, the biggest beneficiaries of a competitively priced biodiesel would be government and private truck fleets that use a central fuel distribution terminal, Lumpe said. It may be several years before gas station pumps will carry the blend.

Ohio truckers are hoping alternatives fuels are a success, said David Bartosic, communications director for the Ohio Trucking Association.

Bartosic said the current prices for diesel are devastating the industry. Alternative fuels and more efficient engines carry the hope for reducing fuel costs, which is the top expense of a trucking company, he said.

"What it really comes down to is how to make these economically feasible," he said.

Philip Lattavo, an owner of Lattavo Brothers Trucking Co. in Canton, is also hoping economical alternative fuels will enter the market.

He said trucking companies do not usually have the clout to pass their costs onto the businesses employing them to ship their goods. Truckers benefit most by reducing their costs.

Lattavo Brothers has about 45 trucks and also hires about 40 owner-operators to ship goods. Lattavo said he feels bad for the independent truckers who are suffering from the high prices.

"If you get $1.50 per mile in revenue and you have $1.65 in costs, then it doesn't take a rocket scientist to figure out you're not going to last long," he said.